This study is a multi-hospital collaborative project for a controlled evaluation of the effect of intensive psychotherapy with hospitalized schizophrenia patients; it will be conducted by the psychiatric staff of the University Hospital, acting in its affiliate program in the May Unit, Boston State Hospital and by Harvard University, acting as the McLean Hospital. All consenting schizophrenia patients whose diagnosis is clear and who meet certain criteria will be randomly assigned to the general hospital psychiatric treatment program alternately with a similar program which includes intensive psychotherapy with experienced therapists. A number of base line measures will be given on admission to the study and many repeated through three years of treatment, with a follow-up after discharge for a longer period. The relation of outcome to experience, frequency of treatment, degree of treatment involvement, demographic background characteristics of the patient, and factors responding to treatment of both types, - cognitive, emotional, role performance and other characteristics will be examined periodically. In pilot phase, from each hospital 40 patients will be used to assess applicability of base line measures, 20 will be screened for repeated follow-up and three will be used to assess feasibility of study of interview psychotherapy.